Lawsuit threat faces Andersen UK partners
Andersen UK partners could face a lawsuit running into billions if creditors of Enron Europe decide to sue the company's former auditors.
Andersen UK partners could face a lawsuit running into billions if creditors of Enron Europe decide to sue the company's former auditors.
At a creditors’ meeting on Friday, PricewaterhouseCoopers, administrators to the collapsed energy group, will lay out the options and give an estimate of how much can be feasibly recouped from the collapse.
At the top of the administrators’ agenda will be whether creditors should pursue the possibility of suing the auditors. Recoverable assets are estimated to be between £500 and £700m. Liabilities already exceed several billion pounds and the administrators have ‘a huge and complex task’ ahead of them.
As well as the financial claims, Andersen would potentially suffer further damage to its reputation if a hearing was to go through the courts. But one question that remains open is at whom creditors could direct any legal action.
A lawyer close to the profession said under UK law, Andersen could be viewed as a global entity, and not separate partnerships, so UK partners could be liable.
In response to the possibility of legal action in the UK, John Ormerod UK managing partner of Andersen told Accountancy Age: ‘There is no suggestion we have done anything wrong in relation to Enron Europe, so the thought of whether we could withstand claims is fanciful.’
Enron Europe’s four companies’ had 250,000 trading positions with 1,000 parties, said Neville Kahn, PwC administrator to Enron Europe. ‘There’s the problem of complexity of liabilities.’
The numbers you crunch tell a story. Your expertis...
22yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThree years after accountancy group DJH Mitten Clarke launched, they have announced that they have rebranded to DJH. The DJH Mitten Clarke name reflec...
View articleStatic budgets outdated. Embrace agile budgeting for a smooth year-end close and adapt to changing markets. Read More...
View articleSaffery Champness's strategic rebrand to "Saffery" reflects a bold step towards aligning its historic values with a modern, innovative ethos, fosterin...
View articleSumer’s CEO Warren Mead believes accountants have a responsibility to champion smaller and medium-sized businesses and that successful entrepreneurs a...
View articleMid-market firms experience largest percentage increase in fee income in 2023, as consultancy services start to become leading income streams for the ...
View articleBaker Tilly International has today announced record global revenues of US$5.2bn for the financial year ended 31 December 2023, up 11% on the previous...
View articleWhilst Small and Medium Enterprises (SMEs) account for around half of the turnover in the UK private sector[1], our own AAT research shows that over a...
View articleGrant Thornton UK as confirmed the appointment of Malcolm Gomersall as its new Chief Executive Officer. Gomersall, who has been with the firm for over...
View article